Brazil’s Corn Ethanol Craze Is About to End, Major Producer Says
- Lower prices of biofuel are seen putting a cap on new projects
- A corn boom recently forced cane mills to produce more sugar
A farmer picks corn during a harvest in Correntina, Brazil.
Photographer: Dado Galdieri/BloombergThis article is for subscribers only.
A corn ethanol boom that reshaped Brazil’s biofuel industry is nearing an end, according to São Martinho SA, one of the country’s largest producers of the fuel.
Weakness in prices is making it harder for companies to keep investing in new ethanol plants, São Martinho Chief Financial Officer Felipe Vicchiato told investors Friday. The company makes ethanol from sugar cane and recently started up a new corn plant, but the executive said plans for expanding into corn are no longer economical.